THE NEW LOAN BILL.

Manawatu Standard, Volume XLII, Issue 10110, 18 October 1917, Page 6

THE NEW LOAN BILL.

STATEMENT M SIR JOSEPH WARD. HEAVY WAR EXPENDITVRE. SIXTY-THREE MILLIONS BORROWED TO EM) OK SEPTEMPEH. (Pub Press Association.) WELLINGTON, Oct. 13. In the House last evening Sir Joseph Ward nioved tho second reading of tho War Purposes Loan Bill No. 2. He said since 1316 this country had borrowed £41,6f14,'2£4 for war purposes alone, irrespective of the, amount asked for in this Hill. In addition to this amount other loans had been raised amounting lo £6,077,700. Thwi (here was four million proposed to !.<•. raised by this Hill, which brought the grand total _up to £51,761,984." I" view of tho magnitude of these figures members undei stand that it it. had not been necessary to raise this extra four millions tho Government would not have asked them to do so. He fell, confident, however, that the country would cheerfully bear the burdens imposed upon"it by abnormal circumstances and hell) the Motherland to win the war. Hon. Bu'cklo is:iid !u> had no doubt the money wouid bo raised, but he warned tho Minister not to put too great, a strain on the financial institutions of the Dominion. Mr Payne uoked if it was proposed to raise this loan free of income tax, us was tho case with previous loans. Ho had no doubt it was, anil characterised the whole business as "tho feeding, of financial vultures" on the country, fn view of thus position, the people ought to insist at once on the establishment of a State Bank. Mr Pearce asked tho .Minister to state what amount of the last loan had been aibsci'ibed by the jteoplo and by. financial institutions.

Dr. Newman sjiul we were conducting tho new war on old-fashioned finance, lie risked tho Minister to say whether he proposed to raise any part, of this loan beforo March! I £ not. how-much was'proposed to bo raised in March. He urged that an independent cdmhiisf.ion be appointed to overlook huge expenditure of trie Defence. Department. Mr Ell controverted tho arguments of Mr Payne in t'ft'voiir of a State. Bank as a panacea for our-financial ilia. H'e. favoured,-the mieperision of pihkhig'fii'nd payments lor a, foAV years as a relief; in die taxpayer. Mr Harris favoured- - 'raking a. portion of tho loan on tho principle of premium bonds. Hir Joseph Ward, in reply, eaid, hi- could noc afford to enter upon experiments such as a States Bank- and premium bondr l , as they might raise • opposition iri quarters where it was necessary to.cultivate friendly relations. Regarding tho apparent discrepancies in fch«l'Defcnce Departinent's estimates, he contgndedj they were only apparent by tho increased amount asked for being due entirely to-increased expenditure of war material in some great battle for which tho New Zealand Government had - to pay, that which no.man can accurately estimate beforehand. In an amended statement o' our borrowings, he said up to the. eiuVof September wo had borrowed or takftii authority to borrow £63.335,000. Tt> this hail to be added £4,ooo.ooo'in this Bill, bringing tho grand total to £67,335,000. lie could not say. how much wc ha.ve to raiso hero because lie hoped to get tho Homo authorities to take a portion of our stock in payment of our liabilities in Britain. On this depended how much wo had to raise, of tho £4.000,000 now being- asked far. Dealing with the last loan ho said it wa-, a great success, and it would nr.t he necessary to put into fo'ree the compulsory clauses, but he would riot hesitate to do so in connection with- future, loans, if nace'ssary. llo,did.:.nofc think hor-would hate/'to-. raise . morr> 'than - '£l-2rOOO,OOO i ,in,' ; 'ihe -, .jext-[K ; ii : i,iori dwil -of ■ winch : was alreadytprqihisei}, nor i}id he think Inwould, lja'vo£to£ra|se- nay'of'it. beforp March* but ihafc would '"depend 'upon getting'our slock accepted in Britain. Ho was closely watching ihe,■rates,'of interest, and without, desiring to interfere too much with the course of business,' iio would see rates of interest did not become extortionate. The Government lending departments wefo showing a good example .in I his : respect, Discussing the abaiu'loniuont, of the sinking hind, he declared..-that never, so long as, ho was Minister for Finance, would he yield to such a .suggestion, upr would lie agree to breaking in oil our reserves. By this means ivo would bo in a strong position U> meet our obligations and many new problems which would arise aftcjjjptho war. Tho second reading was agreed to on tho voices, and the Bill was then put through the remaining stages without amendment and passed.